Disney Cruise Line made a long term commitment to Texas today. The Port of Galveston and Disney Cruise Line finalized a 10-year preferential berthing agreement with an option to renew for two additional five year periods. The newly inked deal is effective November 1, 2018 as it was back dated.
The new agreement outlines plans for a shared cruise terminal that will accommodate a ship equal to or larger than the Disney Magic and Disney Wonder. Additionally, the Port of Galveston projects that over the first five years of the potential 20 year agreement, Disney will nearly double its sailings.
Doing some quick math this new contract means Disney Cruise Line is committed to Galveston until 2028.
Back in December 2018, the Port of Galveston was working to secure a 5-year agreement with Disney Cruise Line. The port met in Mid-December to discuss the agreement.
According to the December 18th meeting, Disney Cruise Line’s contract with the port expired in November 2018 therefore, the new agreement was retroactive and backdated to November 1, 2018. Disney Cruise Line approached the Port of Galveston regarding a longer term agreement. The Port of Galveston wanted additional port calls from Disney and an increase to the current tariff. Disney Cruise Line agreed to increase calls from about 12 to 26 sailings and an increased tariff from $4.15 to 7.50 per passenger movement (embarkation/debarkation). Disney agreed to a minimum guarantee of $1.1 million wether or not a Disney ship visited the port.
The Port of Galveston long term hope is to lure a Disney Cruise Line ship to sail year round from Texas, but Disney was not ready to commit to a full year worth of sailings. However, the board hinted at DCL’s potential to go year round in about 5b years. During the meeting, the board members mentioned that the contract gives Disney Cruise Line Terminal 2 on Saturday & Sundays with some exceptions based on other berthing agreements already in place with other cruise lines.
The Port of Galveston released the following statement on the agreement.
“September 22, 2012 marked the first time ever that a Disney Cruise Line ship set sail from the State of Texas with the maiden voyage of Disney Wonder. The Port has been seasonal homeport to both Disney Wonder and Disney Magic ever since. We are thrilled to be able to continue to give Texas and the southwest region of the United States the opportunity to experience Disney cruise vacations from their own backyard,” said Port of Galveston CEO/Port Director, Rodger Rees. “We are proud to be one of the few selected homeports for Disney Cruise Line.”
Disney Cruise Line released their own statement on the new 10-year preferred berthing agreement with the Port of Galveston.
“Our guests have loved visiting Galveston and setting sail from this historic port to the western Caribbean, Key West and the Bahamas,” said Jeff Vahle, president of Disney Signature Experiences and Disney Cruise Line. “As we plan to expand our fleet and introduce new experiences and entertainment aboard our ships, we couldn’t be more excited to extend our commitment with the Port of Galveston.”
What do you think about Disney Cruise Line’s long term commitment to Galveston?